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Feb 03, 2000
PAA to Sell Pipeline Segment for $129 Million
(Houston – February 3, 2000) Plains All American Pipeline, L.P. (NYSE:PAA) announced today it had entered into a definitive agreement with a unit of El Paso Energy Corporation (NYSE:EPG) for the sale of a segment of the All American Pipeline which will soon be inactive. The purchase and sale agreement provides for a total sale price of $129 million. After taking into account estimated costs to remove certain equipment and underground piping at various crude oil pump stations and associated transaction costs, net sale proceeds to Plains All American are expected to be approximately $120 million to $124 million. Net proceeds will be used to reduce outstanding bank debt.

The segment of the All American Pipeline being sold extends from Emidio, California, to McCamey, Texas. In November 1999, Plains All American announced its intention to sell approximately 5.2 million barrels of crude oil line fill located in this segment of the line and owned by Plains All American. The line fill sale and the associated purging process are expected to be completed in February.

The transaction is subject to certain closing conditions, including completion of the line fill purging, consent from PAA’s lenders, routine due diligence by the purchaser, regulatory approvals and abandonment of existing tariffs on the affected section of the pipeline. Closing for the transaction is scheduled for 10 days following the later of receipt of all regulatory approvals or completion of purging of the pipeline.

“The sale of this underutilized pipeline segment represents another very positive step for the Partnership. When completed, the sale proceeds will enable us to reduce debt and improve our overall financial flexibility without a material reduction in our earnings capacity,” said Greg L. Armstrong, Plains All American’s Chairman and CEO.

Except for the historical information contained herein, this news release contains forward-looking statements concerning a sale transaction that involve certain risks and uncertainties. These risks and uncertainties include, among other things, receipt of governmental approvals and consents from third parties (including the partnership’s lenders), satisfactory completion of customary due diligence, successful completion of the pipeline purging and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil discussed in Plains All American’s filings with the Securities and Exchange Commission.

Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil gathering and marketing activities, primarily in California, Texas, Oklahoma, Louisiana and the Gulf of Mexico. Plains All American Inc., a wholly owned subsidiary of Plains Resources Inc., holds an effective 54% interest in Plains All American and serves as its general partner. Plains All American’s common units are traded on the New York Stock Exchange under the symbol “PAA”. Plains Resources Inc.’s common shares are traded on the American Stock Exchange under the symbol “PLX”. Plains All American is headquartered in Houston, Texas.
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